By Frank N. Wilner, Capitol Hill Contributing Editor, Railway Age Magazine; January 26, 2019
Restoration of the 50% investment tax credit for short line railroads—commonly known as 45-G for its designated section in the Internal Revenue Code—again appears a reality in Congress after that “wall thing” debate interfered with the tax credit’s passage just prior to final adjournment of the 115th Congress.
Crucially, the newly introduced House and Senate bills in the 116th Congress apply the investment tax credit retroactively to 2018—as the previous successful extension expired at the end of 2017—and make the 45-G credit permanent so as to avoid periodic renewal in the future.